Working on a paper on Netflix and submitted my third module. The instructor is taking points off for things I have the opportunity to correct, but am at a loss. She is asking me the specific cost of goods for netflix. She referenced annual report but it's greek to me. 

Can anyone offer assistance on what I can add there? or maybe a link which would clearly spell it out for me. This is what I wrote:

Netflix has fixed costs referred to as SGA (Sales, General and Administrative) expenses which include rent, utilities, salary and benefits. SGA costs will rise with inflation, but they have also risen for Netflix as the company as evolved from a DVD rental company to streaming company. Netflix has invested in state of the art technology to provide the highest quality of streaming.

The biggest variable cost Netflix has is the licensing and streaming content. Why does Netflix spend so much? With new streaming services such as Disney Plus launching and threatening to cut into their market share, they have to offer exclusive content that is not offered elsewhere. Netflix has invested an average of 34% more per year since 2015 on content. Netflix is hoping by investing in original content now, it will provide profitability in the long run.